Texas Securities Watchdog Probes FTX US
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The Texas State Securities Board is trying to find out whether FTX US is violating state law by offering unregistered securities through its yield-bearing service.

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According to a recent court filing, the agency alleges that FTX US "may not be fully disclosing all known material facts" to investors, thereby "possibly engaging in fraud."

The regulator believes that certain principles of FTX US may also be violating disclosure requirements. TSSB Director of Enforcement, Joseph Rotunda, said:

"Further investigation is necessary to conclude whether FTX Trading, FTX US and others are violating the Securities Act through the acts and practices described in this declaration."

The statements were made as part of its audit of the sale of Voyager Digital's assets to FTX. FTX offers clients up to 8% APY on their first $10,000 deposit.

In September, FTX.US CEO, Brett Harrison, announced he would step down as the exchange's head and would work in the company as an advisor. Harrison wrote in a Twitter thread that the transition process would take a few months, but declined to reveal who would replace him on the role.

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Earlier in August, the Federal Deposit Insurance Corporation (FDIC) ordered FTX.US to stop making "false representations" suggesting that the exchange's services might be FDIC-insured. The FDIC said that Harrison misled investors, when he said in a tweet that "stocks are held in FDIC-insured SPIC-insured brokerage accounts."

Harrison responded to the accusations, saying that the exchange was never trying to mislead investors. However, later he deleted that tweet.

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